A special purpose acquisition company (SPAC) 26 Capital Acquisition Corp is promptly liquidating after failing to complete a merger with Okada Manila’s operating entities.
Due to legal disputes between the parties, a recent US court ruling halted the proposed SPAC merger. The inability to meet the merger deadline led to liquidation, with 26 Capital forgoing the final monthly payment of $275,000 to extend the combination period to October 20, 2023. The company intends to seek damages through legal action against Okada Manila.
As part of the liquidation, the SPAC will redeem all outstanding shares of common stock issued to public stockholders at a per-share redemption price of $10.95 on September 25.
The parent company of Okada Manila, Universal Entertainment Corp, anticipated an appeal from 26 Capital in response to the Delaware Court of Chancery’s decision to block the merger. The court had criticized 26 Capital’s efforts to force the merger through.
The legal disputes began in February when 26 Capital founder Jason Ader filed a lawsuit against Okada Manila entities for allegedly violating the merger agreement. On June 30, 2023, Okada Manila formally terminated the merger agreement, citing 26 Capital’s violations and fraudulent behavior.
Original story by: IAG
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